The company is launching Travelsupermarket.com and has partnered with internet service provider Tiscali to offer web-based comparison of car hire and hotel prices.
will host the services when they launch in the first quarter of next year.
The £4m investment will be spent on marketing Travelsupermarket.com online, as well as on developing price-comparison technology.
The travel service is hunting brand partners in the airline, car hire and hotel sectors to provide dedicated services.
is entering online travel as the sector consolidates, with growing investment from established high-street travel firms.
Last week, Ebookers confirmed that it had accepted an offer of £201m from hotel and car-hire group Cendant for its business. Ebookers founder Dinesh Dhamija has agreed not to set up a rival firm in the next 10 years.
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